Click here to close now.

Welcome!

Big Data Journal Authors: Pat Romanski, Liz McMillan, Elizabeth White, Harry Trott, William Schmarzo

News Feed Item

Crew Energy Inc. Announces 2013 Budget Targeting 15% Increase in Liquids Production- January 7, 2013

CALGARY, ALBERTA -- (Marketwire) -- 01/08/13 -- Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) is pleased to announce its Board of Directors has approved a 2013 capital budget of $219 million. The 2013 program is designed to focus on the Company's operating strategy to invest in the highest rate of return projects while also further defining and capturing hydrocarbon resource. Funding of this program will come from cash flow from operations and bank debt. The 2013 program is expected to provide 15% liquids growth spearheaded by the drilling of 101 (99.0 net) wells with 87% of the wells targeting oil and 13% of the wells targeting liquids rich natural gas.

In 2012, Crew achieved its target exit rate of 28,000 boe per day prior to the closing of the Kobes disposition (sale of 625 boe per day) and is estimating fourth quarter production based on preliminary field estimates of approximately 27,000 boe per day, an increase of approximately 3% over the prior quarter. With the sale of 625 boe per day and the shut-in of 400 boe per day of natural gas production that became uneconomic with the expiration of a transportation contract late in 2012, Crew is currently producing approximately 27,000 boe per day. In the fourth quarter, the Company drilled 24 gross wells including one well at Kobes which was included in the fourth quarter disposition, one well each at Septimus and the Deep Basin which were part of the accelerated 2013 program; 13 wells at Princess including a horizontal well that tested at a rate of 800 boe per day based on 144 hours and eight heavy oil wells at Lloydminster which included three successful horizontal wells at Wildmere that tested two separate Mannville formations. We also initiated water injection on our eighth waterflood at Princess as part of our long term enhanced recovery project and completed a produced water disposal well at Septimus that will eliminate approximately $1.0 million of water handling costs annually.

Production growth is forecasted to accelerate throughout 2013 with a target exit rate of 29,000 to 30,000 boe per day and an annual average of 27,500 to 28,500 boe per day. This year's program will maintain a focus on secondary recovery programs at Princess and Lloydminster with a forecasted four to six new projects planned. These investments provide some of the highest rates of return in the Company and are expected to measurably reduce corporate declines over time. Capital will also be allocated to land retention and resource capture initiatives at Septimus and in the greater Kakwa area of the Deep Basin. Complementary asset acquisitions are continually being monitored and evaluated but are presently not part of the exploration and development budget.

Crew plans to invest in its four main operating areas; Lloydminster, Princess, Septimus and the Deep Basin in 2013. The Company's ability to invest at attractive economics in these areas has been enhanced by the Company's 2013 hedging program with 48% of forecasted natural gas production and 37% of forecasted liquids production hedged at attractive prices.

At Lloydminster, Crew expects to drill 60 wells where the Company is following up on a number of 2012 exploration and development successes on lands acquired in 2011 and on recently purchased Crown land. Company owned processing infrastructure provides excellent logistics and superior netbacks and the low capital costs consistently generate exceptional returns even in the current wide heavy oil differential environment. In addition to the drilling program, the Company plans to recomplete 40 to 60 wells in the area in 2013.

At Princess, Crew will focus on the optimization of existing production, implementation of three to five new waterfloods and the drilling of 21 wells. Crew's existing waterfloods have been very successful in stemming declines in pools where they have been implemented. Longer term, the Company is targeting decline rates in the area to be reduced to the 20 to 25% range. Based on this program, it is expected this area will generate significant positive free cash flow in 2013.

In the greater Septimus area, Crew will drill 11 (9.0 net) wells with seven (7.0 net) wells targeting liquids rich natural gas and two (2.0 net) wells targeting oil at Tower. Crew has reduced costs in this area by over 10% by optimizing capital efficiencies through pad drilling and modified completion techniques which have also resulted in improved individual well performance. The Company has also invested in water source and disposal infrastructure in the area to further reduce our cost structure, all of which has resulted in enhanced economics with rates of return improving from 20% to approximately 40% despite the current commodity price environment. Crew also plans to work with the owner of the Crew operated Septimus gas plant to expand the facility from its current capacity of 46 mmcf per day to 64 mmcf per day with construction expected to commence in 2013. The planned increase in capacity will allow for increased production from the area in 2014 and a corresponding decrease in per unit operating costs of greater than 15% due to a further improvement in operating efficiencies.

In the greater Kakwa area of the Deep Basin, Crew plans to drill seven (6.8 net) wells targeting liquids rich natural gas. This area is characterized by lower decline production and high liquids content in the 90 bbls per mmcf range of which roughly a third is condensate driving favorable returns. Crew is evaluating a more significant infrastructure expansion for the Kakwa area to take advantage of proposed pipeline expansions and provide for future growth.


2013 CAPITAL EXPENDITURE BY TYPE                                            
----------------------------------------------------------------------------
                                                                            
                                                                  ($million)
Drilling and Completions                                              151.8 
Equip/Tie-in/Facilities                                                25.6 
Optimization                                                           18.3 
G & A/Environmental/other                                              12.8 
Land & Seismic                                                         10.5 
                                                                 -----------
Total Capital                                                         219.0 

Crew's budget and guidance are best estimates based on certain assumptions including operating results and commodity prices and will be regularly monitored by management. Additional information regarding our 2013 budget can be found within the latest presentation on the Company's website at www.crewenergy.com. Our primary goal is to proactively manage our capital program as it relates to operational success and fluctuating commodity prices with a goal to maintain financial flexibility and achieve our production goals.

CAUTIONARY STATEMENTS

Forward-looking information and statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the Company's planned capital expenditure program, drilling plans, estimated and expected production levels and commodity mix; anticipated reductions in decline rates at Princess, future commodity prices, the future differential between WTI prices and WCS prices, future royalty rates, the future exchange rate for the Canadian dollar to the US dollar, operating costs, transportation costs, general and administrative costs, interest costs, the Company's cash flow from operations, future results from operations; future development and exploration activities and related capital expenditures and adequacy of anticipated methods of financing, the number of wells to be drilled and completed and related production expectations; and the amount and timing of capital projects.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; the ability of Crew to successfully market its oil and natural gas products; ability to improve upon historical recovery factors.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Crew's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents, (including, without limitation, those risks identified in this news release and Crew's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Crew is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on The Toronto Stock Exchange under the trading symbol "CR".

Contacts:
Crew Energy Inc.
Dale Shwed
President and C.E.O.
(403) 231-8850

Crew Energy Inc.
John Leach
Senior Vice President and C.F.O.
(403) 231-8859

Crew Energy Inc.
Rob Morgan
Senior Vice President and C.O.O
(403) 513-9628
www.crewenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@BigDataExpo Stories
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
Hybrid IT is an approach to delivering IT services that matches business requirements and application needs with different IT deployment modalities. In their session at 16th Cloud Expo, Jeff Katzen, Director of the Cloud Practice at CenturyLink, and Gary Sloper, Area Vice President, Sales Engineering and Operations, at CenturyLink, will go into more depth around those different modalities and how customers have made decisions to choose between them. They will talk to some of the challenges t...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, will discus...
Organizations today are confounded by an avalanche of data that needs to be processed and managed on a daily basis. Through relevant use cases and a thought-provoking dialogue on an organization’s ‘Data to Decisions’ journey, Andrew Clyne, Chief Data Officer at CenturyLink Cognilytics, will reveal in his session at Big Data Expo how your organization can monetize data as a strategic asset. State-of-the-art Big Data and Advanced Analytics capabilities provided as a managed service can enable da...
Move from reactive to proactive cloud management in a heterogeneous cloud infrastructure. In his session at 16th Cloud Expo, Manoj Khabe, Innovative Solution-Focused Transformation Leader at Vicom Computer Services, Inc., will show how to replace a help desk-centric approach with an ITIL-based service model and service-centric CMDB that’s tightly integrated with an event and incident management platform. Learn how to expand the scope of operations management to service management. He will al...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, will discuss IoE and the enormous opportunities it provides to public and private firms alike. She will shar...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager – Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, will review next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discuss how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Speaker Bios Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has b...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
SYS-CON Events announced today that EnterpriseDB (EDB), the leading worldwide provider of enterprise-class Postgres products and database compatibility solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. EDB is the largest provider of Postgres software and services that provides enterprise-class performance and scalability and the open source freedom to divert budget from more costly traditiona...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
Why does developer experience matters, what makes for a great developer experience and what is the relationship between developer experience and the broader field of user experience? Software developers are gaining more influence over the purchase decisions of technologies with which they must build on and with which they must integrate. For example, the success of Amazon Web Services, Heroku and MongoDB has been driven primarily by individual software developers choosing to use these tools, ra...
Software Defined Storage provides many benefits for customers including agility, flexibility, faster adoption of new technology and cost effectiveness. However, for IT organizations it can be challenging and complex to build your Enterprise Grade Storage from software. In his session at Cloud Expo, Paul Turner, CMO at Cloudian, looked at the new Original Design Manufacturer (ODM) market and how it is changing the storage world. Now Software Defined Storage companies can build Enterprise grade ...
Gartner predicts that the bulk of new IT spending by 2016 will be for cloud platforms and applications and that nearly half of large enterprises will have cloud deployments by the end of 2017. The benefits of the cloud may be clear for applications that can tolerate brief periods of downtime, but for critical applications like SQL Server, Oracle and SAP, companies need a strategy for HA and DR protection. While traditional SAN-based clusters are not possible in these environments, SANless cluste...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize sup...